On 4/29/09 we received a buy signal in the Canadian $ (CD) futures contract (basis the June contract). From our signal the market rallied about 400 points to its high on 5/11/09. As a commodity related currency, its not a surprise to see it bottom in early March and then rally along with many commodities.

On 3/9/09 the market bottomed at 76.66 and found a recent high on 5/11/09 at 87.17, a 13.7% rally. During this two month period we had a few signals to go long.

On 5/13/09 we received a sell signal in the CD. Whether this is a short term consolidation or something longer in term will depend on exterior components such as the move in commodities. The end of last week witnessed some consolidation in the energy and grain markets.

There is support in the 85.60 to 85.00. If this level is broken, the next level of support is 83.50. We do see a major resistance in the 90.00 to 95.00.

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